Buying property in the EU as a foreigner, the universal process

Step-by-step guide to buying property in EU countries as a foreigner, tax IDs, lawyers, AML, FX, deposits, and how to list for free on immio.

Buying property anywhere in the EU as a foreigner follows a remarkably consistent pattern beneath the country-specific paperwork. Every EU member state has the same core architecture: a tax identification number, a regulated bank account, an independent lawyer, due diligence on title and planning, a deposit-bound preliminary contract, and a notarial deed registered at the land registry. The variations are in the names, the percentages, and the local quirks, not in the structure. This guide walks through the universal process and flags the country-by-country variance you need to plan for.

The universal seven-step process

1. Get your local tax identification number.
2. Open a local bank account.
3. Engage an independent local lawyer.
4. Find a property and complete due diligence.
5. Sign the preliminary contract and pay the deposit.
6. Sign the final deed at the notary.
7. Register the deed and update utilities.

Every EU jurisdiction follows this sequence. Steps 4 and 5 are sometimes combined or split differently, and the names change from country to country, but the architecture is identical.

Step 1: Tax identification number

You cannot buy property in any EU country without a local tax ID. This is the single most-skipped first step among foreign buyers.

In most cases you can have your lawyer obtain the tax ID via power of attorney, which is the smoothest path if you are not yet planning a visit. Allow extra time if you are non-EU, consular appointments in places like Madrid, Athens, and Lisbon can be backed up months in advance.

Step 2: Local bank account

Strictly, you can wire funds directly from abroad to the notary's escrow in many countries. In practice, opening a local non-resident bank account makes the entire process smoother:

• Many notaries require cashier's cheques drawn on a local bank
• Utility companies often refuse to set up accounts without a local IBAN
• Annual property tax direct debits need a local account
• Receiving rental income (if you let the property) requires a local account

Documentation is similar across the EU: passport, tax ID, address proof from your home country, tax-residence certificate, and an explanation of the source of funds. Some countries (Bulgaria, Romania, Croatia) are quicker; others (Italy, Spain, France) increasingly require physical presence and a face-to-face meeting.

Step 3: Independent lawyer

Every EU country has a notary system. The notary is a neutral public officer who signs the deed, collects taxes, and registers the transfer. The notary is not your advocate. The notary will not negotiate, will not argue with the seller's lawyer, and will not flag risks beyond the strict legal validity of the document.

For that reason, every foreign buyer should engage a separate, independent lawyer. The lawyer's job is:

• Title search at the land registry
• Planning compliance and unauthorised-build checks
• Mortgage and lien search
• Tax clearance (no unpaid property tax, community fees, utility bills)
• Energy certificate verification
• Power of attorney drafting
• Negotiation of the preliminary and final contracts
• Source-of-funds documentation

The single most common mistake foreign buyers make is using the lawyer recommended by the seller or the agent. That lawyer has a conflict of interest, however polite the recommendation. Find your own.

Typical lawyer fees: 0.8-1.5% of the purchase price plus VAT. Some lawyers charge a fixed fee (€2,000-5,000 for a residential transaction) which works out cheaper on higher-value deals.

Step 4: Due diligence

Once you have an accepted offer, the lawyer's due diligence begins. The deliverables are similar everywhere:

• Title: clean ownership chain, no inheritance disputes
• Encumbrances: mortgages, liens, easements, pre-emption rights
• Planning: building permits match what is on the ground; no unauthorised extensions
• Cadastral: registered area matches reality; no boundary disputes
• Tax: no outstanding property tax, transfer tax, or local taxes
• Community: no unpaid building or condominium fees
• Utilities: no outstanding bills
• Energy certificate: current and valid

Country-specific extras:

• Italy: cadastral conformity check (a major cause of failed transactions since 2010)
• Spain: licence of occupation (cédula de habitabilidad) and tourist-rental licence transferability
• Greece: legalisation status under successive amnesty laws; forest-zone classification
• Croatia: pre-emption rights of municipalities and neighbours; agricultural land restrictions
• Bulgaria: restitution risks on properties nationalised pre-1989
• Romania: church and forest restitution risks; agricultural land foreigner restrictions

Step 5: Preliminary contract and deposit

Once due diligence is clean, you sign a preliminary contract. Names vary:

• Italy, compromesso or contratto preliminare
• Spain, contrato de arras
• Portugal, contrato-promessa
• Greece, proagoraphysio symbolaio
• France, compromis de vente
• Croatia, predugovor
• Romania, antecontract
• Bulgaria, predvaritelen dogovor

Across the EU the structure is similar: a binding contract committing both parties to the deal, with a deposit (caparra confirmatoria, arras, signal) of 5-30% of the purchase price. Standard penalty clauses:

• Buyer walks → deposit forfeit to seller
• Seller walks → seller returns double the deposit (in most jurisdictions)

The preliminary contract sets the date for the final deed (usually 30-90 days later) and the conditions precedent (mortgage approval, planning permission, etc.). It is registered with the tax authority in some countries (Italy, France) which itself triggers a stamp tax.

Step 6: Final deed at the notary

The notarial deed completes the transaction. On signing day:

• Both parties (or their attorneys-in-fact) attend the notary's office
• Final balance is paid by cashier's cheque or bank wire to the notary's escrow
• Notary reads the deed, parties sign in the notary's presence
• Notary issues an authenticated copy
• Keys are handed to the buyer

Most countries require a certified translator at the deed if the buyer does not speak the local language. Italy requires a sworn translator and two impartial witnesses if a translator is involved. Spain and Greece are more flexible.

Step 7: Registration and follow-up

The notary (or your lawyer in some countries) registers the deed at the land registry within 30-60 days. Until registered, you have full legal ownership but cannot easily sell or mortgage. Final tasks:

• Update utility accounts (electricity, water, gas, internet) into your name
• Update local property-tax records
• Notify the homeowners' association or building administrator
• Update insurance
• Set up direct debits for ongoing taxes and bills

Country-by-country variance: quick reference

For more detail by country, see our individual guides: Italy, Spain, Greece, Bulgaria, Romania.

Common mistakes

• Skipping the independent lawyer. Easily the single most expensive mistake foreign buyers make. The agent's "in-house lawyer" is not your lawyer.
• Wiring funds before due diligence is complete. Some agents will pressure for a "holding deposit" of €10-50k before any contract. Refuse, or wire only to the lawyer's client account against a written reservation contract.
• Underestimating closing costs. A foreign buyer who budgets exactly €300,000 for a €300,000 property will not close.
• Using the wrong company structure. Buying via an offshore holding company can disqualify you from Golden Visa programmes, trigger unfavourable tax treatment, and complicate resale.
• Cash payments. Above €10,000 in cash is illegal across the EU. Even smaller amounts must be documented in the deed.
• Ignoring AML. Source-of-funds documentation is checked at multiple points. Inadequate documentation can void the deal at the notary's stage even after deposit is paid.
• Verbal agreements. Anything that is not in the written contract does not exist. "The seller said the furniture stays" is worthless once the deed is signed without that clause.

Money transfer and FX considerations

For non-EUR buyers (UK, US, Swiss, GCC, Asian) the FX cost can dwarf the difference between a cheap and expensive lawyer.

• High-street bank wires typically cost 2-4% in spread plus fixed fees on a €300,000 transfer. That is €6-12k.
• Regulated FX brokers (Wise, Currencies Direct, Caxton, OFX, Moneycorp) cost 0.3-0.8% on the same volume, saving €5-10k.
• Forward contracts lock in today's rate for delivery in 30-180 days. Useful when the deposit is paid now and the balance is due in 3 months.
• Multi-currency accounts (Wise, Revolut Business) hold EUR before you wire to the notary, separating the FX trade from the property trade.

Always wire in your own name from your own account. Sending funds via a relative, friend, or company without documented disclosure breaks AML rules and can invalidate the purchase.

AML and source-of-funds requirements

The EU's revised Anti-Money Laundering Directive, fully in force from 2025-2026, requires every property transaction to document:

• The identity of the ultimate beneficial owner (no anonymous holding companies)
• Politically Exposed Person screening of buyer, family, and counterparties
• Documented source of every tranche of funds (six months of statements minimum, with supporting docs for sales, bonuses, dividends, etc.)
• Sanctions screening throughout the transaction
• Suspicious-transaction reporting by lawyers, notaries, and banks

Practical implications for the foreign buyer: gather your documents at the start, not the end. A clear paper trail (employment contract, six months of payslips, tax return, sale contract on whatever asset funded the deposit) makes the deal flow. Patchy documentation creates delays and sometimes deal-killers at notary stage.

When to use a local company

Buying via a local company structure is sometimes worth it. The main triggers:

• Multi-investor deals. A local SRL/SL/EOOD/IKE makes shareholding clean and transferable.
• Multi-unit deals. Buying 5+ units for short-term rental works better through a company.
• Commercial property. Almost always held via a company.
• Liability ring-fencing. Especially relevant in countries with strong tenant-protection laws.
• Succession planning. A holding company with shares is easier to gift or inherit than direct title.

Tradeoffs:

• Annual accounting and audit costs of €800-2,500
• Sometimes higher transfer tax or annual property tax for company-held properties
• Lost personal-residence reliefs (capital-gains exemption on primary home)
• Lost Golden Visa eligibility in some programmes (Greek programme requires personal name)

For a single residential home, the company route rarely pays. For €500k+ commercial or multi-unit deals, model both options.

Related guides: buying property in italy, buying property in spain, buying property in greece, buying property in bulgaria, buying property in romania

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